The Ghana National Petroleum Corporation (GNPC) has indicated that the company is in dire financial straits, due to the government’s inability to pay debts owed it since 2014.
GNPC has some debts amounting to $21 million and officials of the corporation say they are helpless in the matter.
Appearing before the Public Accounts Committee of Parliament, the Deputy Chief Director of the GNPC, Joseph Dadzie, said the situation is having a negative impact on the company’s cash flow.
The corporation’s finances have been compounded by challenges with cash flow following a drop in crude oil prices because of the coronavirus pandemic.
Mr. Dadzie noted to the committee that it was in need of help to settle the payments.
“These amounts have been outstanding since 2014/2015 so I think it will be very helpful if we get assistance for the payment of these amounts.”
When asked if there was any indication if the Finance Ministry was committed to the payments, he declined to give a conclusive assessment of the government’s posturing.
“I guess most of these agencies also have some cash flow challenges,” he remarked.
He also noted that the Finance Ministry was catering for other commitments of the GNPC in the energy sector.
“There are other payments that they are making on behalf of GNPC and some other entities as far as gas consumed in this nation is concerned.”
Mr. Dadzie further indicated that the GNPC will be negotiating to try and ease its debt burden.
“We may have to sit around the table with the other entities and have some reconciliation to see whether we can cross out some these amounts.”